Ensuring your projects and programmes of work deliver the stated benefits to your organisation and to your people is essential to the overall health and wellbeing of your organisation. These benefits, both financial and non-financial ensure the organisation continues to survive and thrive. This is the main reason why we do projects.
What are Benefits?
Benefits (sometimes referred to as Value) are the fruits of the investments made by organisations in projects. All projects have benefits which need to be quantified to help ensure the return of investment (ROI) is identified ensuring the right projects are approved. There are four main categories or types of benefits:
Direct Financial Benefits – these tend to be financial and go straight to the bottom line. These will either raise revenue or cut costs or do both. These are relatively easy to quantify and monitor, e.g., new service offering
Non-Direct Financial Benefits – these are usually financial and involve spending but they do protect the bottom line. The benefits here are about cost avoidance and therefore can be at times nebulous in nature. These are relatively easy to quantify but can be difficult to appreciate, monitor and realise, e.g., safety programme
Enabling Benefits – these are benefits related to efficiency (doing more with the same or fewer resources) and effectiveness (doing the right things right). The benefits here are related to productivity and improved performance. These are relatively trickier to quantify and also more difficult to appreciate, monitor and then realise, e.g., staff training
Soft Benefits – these are the benefits which are perception based and can almost be impossible to quantify. They are very difficult to appreciate, monitor and then realise, e.g., brand reputation
Benefits Management at Nonsuch
At Nonsuch we like to keep Benefits Management simple, savvy and structured. Regardless of whether Benefits are being managed across a portfolio, a programme or a project, the Benefit Management methodology is straightforward and follows 4 stages:
- Benefits Identification – All benefits are identified and grouped in their respective categories
- Benefits Quantification – Each benefit is quantified into dollars, performance indicators or both
- Benefits Tracking – during the life of the programme or project, ensuring the projected level of benefits is kept up to date
- Benefits Realisation – near or during or after the close of a project, ensuring the actual realisation of the projected benefits.
Benefits Management is important because it is almost always the key input to the Business Case along with costs. This comparison between costs and benefits influences decision making before, during and after decisions have been made to invest capex and opex spend.
How we can help you
At Nonsuch Consulting we have trained consultants who can stand up a Benefits Management framework for your organisation and ensure it slots into any of your pre-existing processes. This includes refreshing Business Case templates to ensure they are compliant with the framework. We also deliver training, outsourced Business Case writing and consulting services including reviewing and quality assuring existing Business Cases no matter the subject matter.